The Graph (GRT): Decentralized Blockchain Data Indexing Explained

[00:00:00]Cryptocurrencies are gradually finding more use in many areas.

[00:00:03]These include, for example, digitization and Web 3.0, with the blockchain also playing an important role.

[00:00:09]Many applications rely on external data sources, which an indexer provides.

[00:00:14]The Graph is one of the leading providers, preparing the data for users and making it available.

[00:00:19]After three years of development, The Graph protocol launched on the Ethereum mainnet on the 17th of December, 2020.

[00:00:25]Since its launch, the GRT token has gained significant popularity, seemingly jumping out of nowhere, straight into the top 50 largest cryptocurrencies.

[00:00:34]The Graph Network is a middle layer between various blockchains and decentralized applications.

[00:00:39]When creating decentralized applications, there needs to be a way to securely communicate data between the blockchain and the user-friendly front end, plus the web of smart contracts structuring the application.

[00:00:50]The Graph protocol makes it easier for developers to create dApps by organizing smart contract data on Ethereum.

[00:00:57]The protocol saves developers tremendous amounts of storage and hours creating reliable and efficient data feeds from the blockchain.

[00:01:04]The Graph Network has created the first decentralized indexes for developers of dApps on the Ethereum blockchain, called subgraphs.

[00:01:11]The Graph allows developers to use these innovative decentralized indexing tools to access organized data on Ethereum.

[00:01:18]The protocol improves organizing smart contract data to make it easier for developers to focus on the front-end and other core aspects of an application.

[00:01:27]Before the existence of The Graph protocol, developers would have to use proprietary indexes, which takes away from decentralization.

[00:01:34]Furthermore, it often would require substantial hardware and engineering sources.

[00:01:39]The Graph offers developers easy access to open-source API subgraphs, with massive crypto projects including Uniswap, Synthetix, and CoinGecko already using The Graph's hosting service.

[00:01:52]The Graph seeks to facilitate the seamless data exchange between blockchains and applications.

[00:01:57]The platform is among the first decentralized indexing and querying software available in the market.

[00:02:03]As such, it continues to see growing adoption.

[00:02:05]Impressively, the network has already hit well over a billion queries since its launch in 2020.

[00:02:11]The Graph offers developers an easy-to-use, cost-efficient, and secure API.

[00:02:16]This network allows decentralized applications to use smart contracts to add data to the Ethereum blockchain.

[00:02:22]Graph’s APIs are in use by some of the most popular DeFi platforms in the market.

[00:02:29]Specifically, AAVE, Aragon, Balancer, DAOstack, Uniswap, and Synthetix leverage this technology to improve data responsiveness.

[00:02:37]Before 2020, you need to be technically inclined to build a Dapp that relies on accessing data from the Ethereum blockchain in an efficient way.

[00:02:46]Back then, developers had to develop their own strategy to gather data and transform it from different sources.

[00:02:52]Recognizing this technical barrier, Graph developed a powerful toolset to help drive innovation and simplify this once complicated process.

[00:03:00]Their primary concerns were to accomplish this task without degrading security.

[00:03:05]Ethereum is by far the most popular DeFi blockchain, with hundreds of platforms launching since 2020.

[00:03:11]The recent expansion of the decentralized finance sector has expanded Ethereum's market position yet again.

[00:03:17]As such, Graph is positioned perfectly to help fuel this development.

[00:03:22]The Graph has even been compared to Google for features like querying and indicating the data it holds the record of being the first of its kind.

[00:03:30]Indexing blockchain data from networks of repute like Ethereum and Filecoin, the Graph then groups them into open APIs called subgraphs that anyone can query using GraphQL.

[00:03:41]Utilizing the smart contract and adding data to the Ethereum blockchain, The Graph network promulgates decentralized applications and becomes a pioneer for such applications in the DeFi sector.

[00:03:52]With innumerable networks getting added to the list, The Graph currently supports indexing data from Ethereum, and IPFS.

[00:03:59]To date, 1,700 subgraphs have been deployed for dApps like Aragon, Uniswap, Balancer, Gnosis, Livepeer, and Decentraland.

[00:04:08]The Graph's top competitors include Tatum, Alchemy, StreamingFast, and QEDIT.

[00:04:13]The actual facilitator or so-called facilitator behind this protocol is the native token GRT which generates decentralized indices and API feeds for blockchain-based projects.

[00:04:25]The project lead and co-founder Yaniv Tal shed light on the platform starting soon.

[00:04:30]The project shall leave a predominant footprint in Web 3.0, emerging as a critical leader in offering more fluidity and scalability to various decentralized applications acting as a middle layer.

[00:04:41]The token plays a valuable role in the DeFi ecosystem resulting in many new users have joined the ecosystem.

[00:04:48]At the beginning of the last year, the company announced additional support to blockchains like Polkadot, Solana, and Celo.

[00:04:55]Later in September, it recruited thousands of indexers, delegators, and curators.

[00:04:59]In 2020, Edge & Node software was introduced to aid blockchain protocol development.

[00:05:05]After a few days post the announcement, the price climbed to +100% growth.

[00:05:10]The company actively rewards developers and ethical hackers for discovering any shortcoming and resolving it in its protocol in the past few months.

[00:05:19]It is available for trade on a wide range of cryptocurrency exchanges.

[00:05:23]There are a lot of mixed signals concerning the growth of GRT in 2022 and 2023.

[00:05:29]We have looked at what several price analysts have to say about the future of this coin in the next two years.

[00:05:35]As usual, the volatility aspect comes out very strongly, judging by how different the predictions are.

[00:05:41]Some experts believe that GRT might rebound in 2022/2023 and hopefully trade above its all-time high at some point.

[00:05:49]Some believe that the coin might struggle during this period.

[00:05:52]According to Wallet Investor, the rally to $2 and $3 will be challenging, with the coin mostly bouncing between $0.1 and $0.9 for the rest of 2022.

[00:06:01]For some reason, Wallet Investor believes GRT will record more downtrends with very little growth.

[00:06:07]The coin might start dropping from the start of the year, where it will be trading at around $0.93 and close the year at $0.12.

[00:06:14]This is a bit discouraging if you look to invest in The Graph for the long term.

[00:06:19]Gov.capital seems to align with the same downtrend trajectory as Wallet Investor.

[00:06:24]In fact, the numbers are even lower.

[00:06:26]The site predicts that GRT will reach $0.15 by mid-May 2022, where its predictions end.

[00:06:32]We can’t tell why these two price analysts think GRT will drop in 2022.

[00:06:37]We can’t also say that they are right or wrong.

[00:06:40]This is because some other price trackers are hopeful that this digital asset might rise in 2022.

[00:06:46]For example, Coin Price Forecast predicts that GRT might trade at around $0.55 in mid-2022, then close, then at close to $0.60.

[00:06:55]This is not exactly encouraging, keeping in mind that it is still more than $1 lower than the ATH.

[00:07:01]However, it is a good indication that the token might record positive growth in 2022.

[00:07:06]Priceprediction.net agrees with this as it predicts that GRT will end 2022 at an average price of $1.51 or as high as $1.83.

[00:07:16]Our most optimistic prediction comes from Long Forecast, which happens to be the only site that believes GRT will cross $2 in 2022.

[00:07:24]Speaking for most long-term investors, we do hope this will not be the case when 2023 comes around.

[00:07:29]Wallet Investor is still very bearish about 2023 and predicts a drastic drop.

[00:07:34]According to the site, GRT will start off 2023 at around $0.114 then increase only slightly to $0.151 by the end of the year.

[00:07:45]The Graph has a lot of potential to grow and become a key player in the ever-growing decentralized data industry.

[00:07:50]The project team has an excellent track record and is committed to making this idea come to life.

[00:07:55]For GRT tokens to have real value, The Graph needs strong adoption from both developers and users of decentralized applications built on top of the platform.

[00:08:04]It's difficult to tell how GRT will perform in the short term, but long-term investments could increase your ROI by several folds.

[00:08:12]According to Tim Frost, the founder of Yield App, The Graph's critical role in the DeFi ecosystem makes it a potentially valuable investment.

[00:08:19]However, being a relatively new token, it won't be easy to assess its actual value until adoption.

[00:08:25]GRT is also a long way down from its all-time high price of $2.88.

[00:08:30]Over the past few days, it has had trouble staying above $0.5 and doesn't seem to be in a hurry to get back to above $2 per coin.

[00:08:38]If you are going to invest in this coin, keep in mind that it is highly volatile and currently experiencing wild price swings.

[00:08:46]If you are looking to invest in a blockchain project with real-world use cases, then investing in The Graph is definitely an option worth considering.

[00:08:54]There is currently no other cryptocurrency that offers the same services as GRT.

[00:08:59]If it succeeds in becoming the information channel for blockchain projects, then the future looks bright for the token.

[00:09:05]The Graph provides a much-needed service to an industry on the verge of another breakout year.

[00:09:10]The network continues to help fuel further innovation and development of the decentralized sector.

[00:09:16]As the industry blossoms, you can expect to see even more DeFi platforms leverage this secure and efficient method for acquiring Ethereum blockchain data.

[00:09:25]For now, Graph is set to continue its role as a cornerstone technology in the market.

[00:09:30]Well, guys, that's all we have for you today.

[00:09:33]What are your thoughts on GRT?

[00:09:34]Let us know in the comments section down below.

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[00:09:54]Thanks for watching.

[00:09:56]We hope you have a great day today, and as always, we'll see you in the next video!